Former Foreign Minister and NSW Premier Bob Carr has defended his dealings with China in a fiery interview with Ben Fordham.

Since leaving politics, Mr Carr has taken up a role as Director of the Australia-China Relations Institute, founded by Huang Xiangmo, a controversial Chinese political donor with alleged links to the Communist Party.

Xiangmo no longer funds Mr Carr’s think tank but has been accused of attempting to further the interests of the Chinese Communist Party in Australia.

Mr Carr tells Ben allegations he was handpicked for the role by Xiangmo are completely out of line.

“The Vice-Chancellor of the university selected me through the normal process for academic appointments.”

Ben questioned if Mr Carr has become too close to China to remain independent.

Ben: “Should you be declaring your links, even if they are indirect links, to the Communist Party when you’re speaking on matters relating to China in Australia?”

Mr Carr: “Ben I regard that as a defamatory statement.”

Ben: “How is it defamatory?”

Mr Carr: “You’re accusing me of having loyalties to the Communist Party.”

Mr Carr warns Australia needs to start building closer ties with the superpower if we’re to prosper into the future.

“I think it’s caught up in all the negativity about the Australia-China relationship and I think it probably sends the message Ben that it’s appropriate for both sides to take a step back.

“I think we’ve got to stop this anti-China panic.

“I think we’re entitled to defend our interests when required, when we see them being threatened and to stand up to China… but I think it is time to reset the relationship.”

Click PLAY below for the full interview

Senator Jim Molan responded to Bob Carr’s interview, telling Ben Fordham China is a great nation but pointing out it has very different values to Australia.

“Bob’s got an absolute right to head up an organisation that promotes trade with China… [it’s] critically important and we must keep doing it.

“But, we are more than an economy in this country. We are a sovereign nation with interests and values and we must remember that.”